The Italian government has agreed to a €350 million loan for 6 months so Alitalia can continue operations while also continuing negotiations with, among others Delta and Lufthansa. Article (in Italian) linked below...
https://www.ilsole24ore.com/art/alitalia-dl-fiscale-l-ennesimo-prestito-ponte-ACESKZs
So what is new?? Alitalia has been a basket case for years. And one of the best international flights we even had was on Alitalia a couple of years ago.
I don't understand why any airline would want to touch Alitalia.
Well, Dave, turns out that you were right--the Italian government is admitting that nobody else wants Alitalia....(article linked below, in Italian)...
The problem is that the government wants to maintain a significant stake in the airline after the private "partners" are brought on board; but... the government will never prioritize the good of the company above potential political repercussions with regard to unpopular decisions/actions needed to make an operationally-sound airline (like cutting employees). I was kind of shocked that any companies even showed interest.
The current gov't (of Italy) was elected by promising not to do this type of bail out of private industry. So much for that.
The EU has said that this type of bail out is illegal. So much for that too.
With corona-virus killing tourism and oil headed to sub-$40/ bbl there's a good chance that many of the airlines we have been used to seeing are due to fail in the next year. Flybe is dead. Alitalia is on it's knees, Lufthansa just asked for favorable terms of payment. American companies just took a bath on corporate bonds (which are investors betting the airline will remain solvent.) I totally expect Norwegian to fold this summer.
Delta's stock dropped 28% last week. They can't afford to buy into anything.
If the virus doesn't stop spreading with warmer weather things will come unglued.
And now it appears that Italy is preparing to nationalize Alitalia, at least for the short-term...
https://www.reuters.com/article/us-italy-alitalia-idUSKBN2120PH
